With 3,703 branches and 9 international offices, Axis Bank is the third largest of the private-sector banks in India offering a comprehensive suite of financial products. It sells financial services to large and mid-size corporates, SME, and retail businesses. Axis Bank has recently started offering education loan to students who wish to pursue their degrees abroad.
1. When can you apply for the loan?
With Axis Bank, you can apply for education loan immediately after you have taken your GRE, i.e. even before you get your admit with collateral. However, to apply for the loan without collateral, it depends on the university. For countries other than the US, you will have to apply once you have started your application with the universities.
2. What is the Loan Amount at Axis Bank?
- The loan amount varies according to your course, university, and your financial profile.
- Axis Bank can fund your study abroad education loan, a minimum of INR 50,000 up to INR 75 lacs for Secured loan.
3. What is the rate of interest at Axis Bank?
- The rate of interest varies with different profiles.
For secured loans, Interest rates can be as low as 10.5% to as high as 13%. You will come to know your rate of interest, once you submit all your documents and apply for the loan. Post which the credit team will decide the rate.
4. What is the repayment tenure of the loan?
5. What is the moratorium period?
The moratorium period provided by Axis Bank is applied to the principal amount. Once your course is complete or you are employed, you can start serving your EMIs (principal + interest) 6 months after whichever happens earlier. You are expected to pay the Simple Interest due every month which can be serviced by your parents.
For example, if you take a loan amount of Rs 10,00,000 at 12% interest. The SI on it every month is Rs 10,000. You are expected to pay this every month till your EMIs start. Post which you pay the EMIs.
6. What are the documents required for the process?
- Proof of identity (any one of the following):
- Voter ID card
- Driving license
- PAN card
- IT returns of the last 2 years and computation of income of last 2 years certified by a Chartered Accountant
- Proof of residence (any one of the following):
- Bank account statement
- Latest electricity bill
- Latest mobile/telephone bill
- Existing house lease agreement
- Bank Statement/Pass Book of the last 6 months
- Optional – Guarantor Form
- Copy of admission letter or the Institute along with Fees schedule
- Mark sheets/pass certificates of S.S.C., H.S.C, Degree courses
7. What is the eligibility on which your loan will be sanctioned?
Axis Bank will provide the education loan to those students who want obtain admission to career-oriented courses like medicine, engineering, management, etc -
- Secured at least 50% marks during HSC(10+2) or graduation.
- Secured admission in India or Abroad through entrance test / Merit based selection process post completion of HSC (10+2)
8. What are the expenses that Axis Bank education loan cover?
- The loan will cover tuition fees, hostel charges (if any), cost of books, etc.
- The quantum of Loan can be determined, subject to eligibility and cost, for case-to-case approval.
9. Is section 80E deduction applicable with Axis Bank education loan?
- Tax benefit under section 80E is applicable when you apply for education loan with Axis Bank.
10. What is the Partial Interest Concept?
- When the payer faces difficulty in paying the interest amount that is payable monthly, Axis Bank provides a Partial Interest payment option to consider the student's request.
- Under this Partial Interest Concept, the amount that is to be paid every month is reduced (i.e. you don't have to pay the complete Simple Interest that is due while you are studying, you just pay a part of it). The remaining part of the Simple Interest is added on with the principal amount that is payable post the Moratorium period.
11. How is this beneficiary?
- With Axis Bank, the Partial Interest Concept benefits your co-borrower by lessening his / her monthly burden. Once you get the job, you can pay the remaining amount.
12. Is the loan given on a secured basis or unsecured basis?
- Axis Bank provides both Secured and Unsecured education loans.
13. How to apply for an education loan, via Yocket?
- Firstly, you need to sign up for the Yocket loan assistance followed by submitting your documents to the Yocket loan assistant. As soon as Yocket receives your documents, Yocket will be connecting with Axis Bank for your education loan. The only thing you have to do is patiently wait for 4 working days and Yocket will get back to you with Axis Bank’s decision. You can get to know on Yocket Loan Assistant.
14. How is this going to benefit you?
- Yocket will help you with quick services and benefit you with high approval rates for your education loan. Your needs will be discussed and you will get advice on which loan suits you the best. In short, you have a trusted friend who will speed up your process.
15. How long do you have to wait?
- To value your time, it is just a matter of 3-4 working days with Yocket after you have completed submitting all your required documents. In case of urgency, Yocket can help you get the loan sanctioned within a day, too.
- However, please don't misuse this provision, this is only in case of emergency situations.
16. What is the Processing fee charged by Axis Bank?
- No Processing fee is charged by Axis Bank.
17. How easy is it to get the loan sanctioned?
- The process of getting your loan sanctioned is a complete online process and Yocket will just take 4 working days after you submit all your documents. In case, you face any kind of difficulty, you can always contact Yocket representative to get assistance. In case of any prior default, your loan doesn’t get rejected directly but is discussed with you and your co-borrower to understand the issue.
- If you have a good academic profile and you are going to a good university, you have a very high chance of approval.
18. Is there any Margin Money at Axis Bank?
- No Margin money is charged for loan amount up to INR 4 lakhs.
- 15% Margin is charged for loan amount above INR 4 lakhs.
19. Are there any prepayment charges by Axis Bank?
- With Axis Bank, there won’t be any prepayment charges i.e. if the student is able to pay prior to the repayment tenure, no prepayment penalty is charged. Most of the students pay their loans prior to their tenure completion.
20. What about the Disbursement?
- It is disbursed to your bank account once you get your education loan sanctioned through Axis Bank, which in turn, you will have to remit to the university. The disbursement will be according to your university fee-payment schedule which will be in installments.
Also, you will have to bear your Forex charges where Yocket can help you with the lower rates.